Sensex, Nifty likely to see weak start amid mixed global cues; GDP data eyed

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The benchmark equity indices BSE Sensex and NSE Nifty are likely to open in the red on Monday amid muted trend in Asian peers. Investors will be eyeing GDP data for the March quarter slated to be out today, along with the core sector data for April.

There will be some cautiousness as an SBI Research analysis of EPFO payroll data shows that net job creation in the economy fell by 16.9 lakh in FY21 over the previous fiscal. However, the FY21 numbers are better than the FY20 net job creation, which had declined by 28.9 lakh, further cementing the view that the economy is not creating new employment opportunities.

Traders may take note of the India Meteorological Department’s (IMD) statement that the arrival of monsoon over Kerala is likely to delayed by two days and it is now expected to make an onset over the state by June 3. Though, falling Covid-19 infection rates in India may lift sentiment.

India has been witnessing a steady decline in daily cases. The country recorded 153,485 fresh Covid-19 cases in the last 24 hours, the lowest daily count in 48 days or since April 13.

The US markets ended higher on Friday as investors brushed off a stronger-than-expected inflation reading, as both the Dow and S&P 500 indexes clinched their first weekly gain in the past three weeks. Asian markets traded mostly in red on Monday as investors continue to weigh inflation risks and the strength of the economic recovery.

Back home, Indian equity benchmarks ended higher by over half per cent on Friday, tracking gains in index heavyweights Reliance Industries, Mahindra & Mahindra, HDFC Bank and HDFC amid positive cues from global markets. The BSE Sensex gained 307.66 points or 0.60% to 51,422.88, while the NSE Nifty index settled 97.80 points or 0.64% higher at 15,435.65.